Shared Flashcard Set

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PHR
PHR Exam
72
Business
Professional
01/02/2009

Additional Business Flashcards

 


 

Cards

Term
Mission Statement
Definition
Broad mission an organization is attempting to carry out on a daily basis. A declaration of the reason an organization exists; important in determining standards, values, strategies.
Term
Vision Statement
Definition
Defines specific goals an organization hopes to achieve in the future.
Term
SMART
Definition
specific, measurable, achievable, relevant and time related goals. Valid goals should be specific, accurately measured, possible with resources and environment and relevant to overall objectives.
Term
Cash Flow
Definition
Amount of money taken in compared to amount of money spent during a given period. Makes it easy to determine if money is being gained or lost.
Term
Return on Investment (ROI)
Definition
Amount of money earned on investment compared to how much spent on investment. Usually used if an org is attempting to decide between two investments.
Term
Return on Equity (ROE)
Definition
Amount of money made compared to the average investment of each shareholder. Usually the foundation of an org's strategic plan, the primary goal of any business is to offer its shareholders the largest return on their investment.
Term
Number of Customers/Orders
Definition
Exact or estimate count of the number of people purchasing or number of orders for a period. Usually used to identify problems with current marketing/sales strategies.
Term
Average Amount Received Per Order
Definition
Total amount received for a period divided by the number of orders. Usually used to determine the effectiveness of marketing/sales strategies from their CURRENT Customer Base. Helps to determine if focus should be on expanding customer base or encouraging current customers to spend more thru initiative programs.
Term
Gross Pofit Margin
Definition
Total revenue for a period minus cost of sales divided by the total revenue for that period. Usually used to determine if a particular marketing/sales strategy currently in effect is actually profitable.
Term
Number of Activities
Definition
Exact or estimated count of how many tasks an org is attempting at one time. Usually used to determine if an org is taking on a larger workload than it normally handles.
Term
Opportunity Success Rate
Definition
Number of opportunites taken advantage of divided by the total number of opportunities available. Useful for developing strategic plans, helps to determine if available opportunities are being used effectively.
Term
Innovation Rate
Definition
Gross revenue from new ideas, products and services divided by the total gross revenue. Used to develop strategic plans. Helps to determine if the new ideas, etc are profitable. Information is compared with market competitors to determine if new innovation strategies should be implemented.
Term
Number of Online Orders
Definition
Count of how many orders placed via company website. Measures the effectiveness of their website. Useful in developing strategic plans.
Term
Availabilty of Information Resources
Definition
Percentage of time the servers, websites, email, etc. are accessbile at the time they are needed. Essential to determining strategic plans. Identify probs with IT systems and personnel to minimize future problems.
Term
Number of Views per Page/Listing
Definition
Count of how many times customers look at a page or online product. Measures effectivess of websites and ads. Important in strategic planning. Should web marketing and design be rethought?
Term
Current Number of Competitors
Definition
Number of business within the same market. Measures how much competition, useful in developing strategic plans.
Term
Average Number of New Competitors
Definition
What is the average number of competitors entering the market each year? Measures how market and competition will change.
Term
Current Market Share
Definition
Percentage of market the business controls or does business. Important to strategic planning because it measures success and growth within the market and compares it with competition.
Term
Average Income of Customers
Definition
Amount an average customer would normally make in a given year. Analyzes current economic environment. Important to strategic planning; can consumer afford service/product?
Term
Accounting & Finance Metrics
Definition
Cash flow, Return on investment (ROI), Return on equity ROE).
Term
Marketing & Sales Metrics
Definition
Number of customers/orders for a period, Average Amount received per order, Gross profit margin.
Term
Operations & Business Development Metrics
Definition
Number of activities, Opportunity success rate, Innovation rate.
Term
Information Tech Metrics
Definition
Number of online orders, Availability of information resources, Number of views per page/listing.
Term
General Business & Economic Environment Metrics
Definition
Current number of competitors, average number of new competitors, current market share, average income of customers.
Term
Sources of Information
Definition
Large newspapers, business magazines, industry websites.
Term
Functions of Management
Definition
Planning, organizing, coordinating, directing, and controlling.
Term
Planning
Definition
Process of determing what the organization is attempting to achieve and how it is going to achieve that goal.
Term
Organizing
Definition
Process of obtaining and allocating human resources, financial resources, etc. to carry out the plan.
Term
Coordinating
Definition
Process of making sure all allocated resources are functioning together as planned to acheive goals.
Term
Directing
Definition
AKA leading.  It is the process of making sure the work associated with the goal is actually carried out effectively.
Term
Controlling
Definition
Process of evaluating the org's progress toward goals. Is the plan actually working?
Term
Project Management
Definition
Process of determing and implementing a plan that leads to the completion of a task within defined constraints. Planning how to complete a project that meets quality standards, achieves predetermined tasks, completed within allotted time and financial limitations.
Term
Factors of Project Management
Definition
Cost, time spent, scope, quality of work and risks associated with project.
Term
Gantt Chart
Definition
Bar chart used to identify tasks involved with a project and a schedule for completing them. Lists each main task (summary element) and subtasks (terminal elements) that are to be completed in order to finish main task. Includes breakdowns of how much of each task has been completed. Also indicates start and finish dates.
Term
Project Evaluation & Review Technique (PERT)
Definition
Determins how much time is required to complete a project. Consists of breaking larger project down into separate tasks and organizing the smaller tasks into a chart. (Circle and arrow chart)
Term
Work Breakdown Structure (WBS)
Definition
Consists of breakine larger project down into separate tasks. Based on the 100% rule which states the subtasks must describe 100% of the work to complete the larger task. Tree type chart structure.
Term
Outsourcing
Definition
Hiring 3rd parties or contractors to perform tasks usually performed in-house.
Term
Factors of Outsourcing
Definition
Costs of vendor, quality of vendors, ability of vendor to meet org's needs, and experience of vendor.
Term
Offshoring
Definition
Hiring an individual or company in another country to perform a task usually done in-house. It is possible to have and offshore division of an organization.
Term
Insourcing
Definition
Org performs task in-house by hiring people or aquiring and outside company to perform the task. Usually done to gain control over complex tasks or to eliminate costs of outsourcing.
Term
SWOT
Definition
Strength, weaknesses, opportunities and threats. Used to analyze the org internally and the external environment after goal setting.
Term
PEST Analysis
Definition

P- (political) laws, regulations, taxes etc.

    E- (economic) current state of economy, growth, inflation.

S- (social) culture, demographics, population, etc. T- (technology) invention adn implementaion of new tech

Term
Porter's Five Force Analysis
Definition
Threat of substitute products, threat of new competition, exsisting competition, bargaining power of customers, bargaining power of suppliers.
Term
Cost/Benefit Analysis
Definition
Decision making strategy that examines and compares the total estimated cost and benefit of each available option.
Term
Organizational Life Cycle
Definition

Birth- business formation, includes aquiring captial, establishing values, and inital business plan. Growth - expansion of market share and profits, number of employees, locations etc.

Maturity - expansion levels off and focus shifts to maintaining current attributes.

Decline - org begins to lose ability to maintain current attributes.

Term
Risk & Return
Definition

Risk - measure of the potential of a return or rather than loss.

Return - measure of monetary value of an undertaking.

Term
Enterprise Risk Management (ERM)
Definition
Techniques used to identify and minimize the effects of risks that may prevent the achievement of objectives. Usually takes place after a SWOT or PEST anaylsis.
Term
Risk Response Strategies
Definition

Reducing risk - action taken to make the risk less likely to occur or cause harm.

Sharing Risk - transfers some of the risk to another party.

Avoiding Risk - stoppping activity associated with risk to eliminate it.

Accepting Risk - monitoring the risk because benefits outweigh the cost.

Term
HR Audit
Definition
Identifies potential risks to company. Consists of a checklist, survey, etc. Designed to assess if an employee or department understanding and is adhering to policies, procedures and regulations set by org in addition to laws and regs set by local, state, and federal govt.
Term
Change Management
Definition
Techniques used to modify an aspect of how the org operates with as little harm as possible. Important because the need to adapt is constant.
Term
Implementing Change
Definition
Empirical-rational strategy, normative-reeducative strategy, power-coercive strategy.
Term
Empirical-Rational Strategy
Definition
Assumes people are ultimately intersted in their own well being and will be more likely to accept changes if they understand how they as individuals will benefit from those changes.
Term
Normative-Reeducative Strategy
Definition
Concept that peer pressure is often an effective tool to bring change. Assumes people rely heavily on social interaction and will act according to societial expectations. This strategy uses slow changes so people will begin to accept the changes as social norms.
Term
Power-Coercive Strategy
Definition
Assumes that people will usually listen to authority figures and do what they are told. Makes it clear that there are no options but those chose by mngt. Refusal brings punishment.
Term
Business Ethics
Definition
Practice of using appropriate practices, procedures, and behaviors to ensure the org functions in a socially acceptable fashion. Ensures each individual is performing their duties in a fair, proper and morally responsbile manner. Essential for any org to maintain a strong sense of what is appropriate and what is unacceptable.
Term
Discrimination
Definition
Making a decision regarding a person or thing based on protected characteristics.
Term
Disparate Impact
Definition
Type of discrimination in which an employer institutes a policy that appears reasonable, but prevents persons of certain color, disabilities, military status, national origin, race, religion or sex from receiving employment or benefits of employment. This type of discrimination was first indentified in by the Supreme Court in Griggs vs. Duke Power.
Term
Disparate Treatment
Definition
Type of discrimination in which an employer deliberately treats an individual differently because of age, color, disability, military status, national origin, race, religion and/or sex. First identified by Title VII of the Civil Rights Act
Term
Equal Opportunity Employment Commission (EEOC)
Definition
Formed by Title VII of trhe Civil Rights Act to protect certain groups from unlawful discrimination. Attempts to obtain settlements from offenders or filing lawsuits on behalf of the victim.
Term
Title VII of the Civil Rights Act
Definition
Passed in 1964, ammended in 1972, 1978, & 1991. Applies to orgs with more than 15 employees with the exception of religious orgs and Indian reservations. Prevents unlawful discrimination in the workplace based on color, national origin, race, religion, pregnancy and/or sex.
Term
Age Discrimination in Employment Act (ADEA)
Definition
Prevents discrimination against people over 39. Applies to companies with more than 20 people. Does not apply to firefighters, police officers, those who do not meet occupational qulifications and termination of reasonalbe cause. Must have 7 days to change mind if waiving.
Term
Americans with Disabilities Act (ADA)
Definition
Prevents discrimination of individuals with disabilities. Applies to companies with more than 15 employees, can't cause financial or operational harm. Must be reasonably accomodating.
Term
Civil Rights Act 1991 (CRA)
Definition
1) Declared specific rights of discrimination victims and the remedy. (2) Acknowledged and defined disparate impact.
(3) Specific regulations & guidelines related to disparate impact cases.
(4) Expanded on previous anti-discrimination laws to enclude congressional employees, foreign locations of American businesses, right to jury trial/civil suit.
Term
Rehabilitation Act of 1973
Definition
Similar to ADA, but only coverd disabled people seeking federal employment or federal contractors with over $10,000 in contracts per year.
Term
Vietnam Era Veteran's Readjustment Assistance Act (VEVRAA)
Definition
Prevents discrimination against veterans. Only applies to federal (sub) contractors with $25,000 or more in contracts. The veteran had to serve more than 180 days with some of the time between 8/8/64 & 5/7/75 or be disabled rated at 10% and be eligible for compensation for Dept. of Veteran Affairs, or served active duty for a conflict with authorized campaign badge.
Term
EEOC Lawsuit Time Limits
Definition
Claim must be filed within 300 days of incident if in state with an EEOC agency, if without one, then 180 days.
Term
Civil Rights Act 1991 Damages
Definition
Between 15-101 employees $50,000
Between 100-201 employees $100,00
Between 200-501 Employees $200,000
More than 500 employees $300,000
These limits only apply to compensatory and punitive damages.
Term
Meritor Savings Bank v. Vinson
Definition
Supreme Court recognizes sexual harrassment and hostile work environment as a form of sexual harrassment.
Term
Uniform Guidlines on Employee Selection Procedures (UGESP)
Definition
Passed 1978. Principles, techniques and porcedures to help employers comply with federal anti-discrimination laws.
Term
Uniform Guidlines on Employee Selection Procedures (UGESP)
Definition
Passed 1978. Principles, techniques and porcedures to help employers comply with federal anti-discrimination laws.
Term
Executive Order 11246
Definition
1965. Established concept of Affirmative Action. Stated federal contractors, to avoid discrimination, were required to ensure equal opportunites to protected classes. Required federal contractors with more than $10,000 contacts per year to implement AA plans and those with more than $50,000 in contracts or 50 employees to file written AA plans with the Office of Federal Contract Compliance Programs (OFCCP)
Term
Affirmative Action Plans (AAPs)
Definition
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